FreedomWorks

FreedomWorks is a non-profit organization heavily involved with the Tea Party movement. It does not disclose its corporate donors, and its leaders are drawn heavily from the leadership of the Republican party and right-wing operatives. In 2006, the Washington Post revealed that from 2001 - 2006 FreedomWorks engaged in a hidden deal with insurance brokers whereby the brokers would sell high-deductible insurance policies and tax-free medical savings plans to individuals at a group discount, and those who purchased the plans would automatically be added FreedomWorks membership list. Customers unaware of the membership arrangement, for which they were charged extra fees. Membership was a condition of getting the discounted insurance plan. The arrangement was credited with helping increase the number of "members" FreedomWorks could claim belonged to the organization. About 16,000 people "joined" the organization in this manner, causing $638,040 to flow into FreedomWorks' coffers over 5 1/2 years in the form of monthly checks for "association fees" collected by the Medical Savings Insurance Company, that were forwarded to FreedomWorks.

Created from merger of CSE and Empower America in 2004
In July 2004, FreedomWorks was created from the merger of Citizens for a Sound Economy (CSE) and Empower America. (Although the FreedomWorks' website stated until late 2007 that it was founded in 1984, it was CSE that was founded at that time.)

Initial press release
In late July 2004, the initial FreedomWorks media release stated that "three of the most respected and accomplished leaders of the conservative, free-market movement" -- former Housing and Urban Development Secretary, Dick Armey, former White House Counsel and conservative luminary, C. Boyden Gray, and Jack Kemp -- "will serve as the Co-Chairmen of FreedomWorks. Bill Bennett will focus on school choice as a Senior Fellow. Matt Kibbe is FreedomWorks’ new President and CEO."

In this initial statement, FreedomWorks outlined that its initial plan was to "run major voter education campaigns and Get-Out-the-Vote (GOTV) efforts in key races" in the 2004 Congressional elections. Kibbe stated that the role of FreedomWorks was to be a "powerful answer to the challenge presented by the Left and groups like America Coming Together (ACT), MoveOn.org, and the Media Fund."

The statement said that FreedomWorks:"'...boasts over 360,000 members and a legal structure that includes a 501(c)(3), a 501(c)(4), a 527, a federal PAC, and various state PACs. FreedomWorks is headquartered in Washington, D.C., with full-time campaign staff on the ground in the battleground states of Florida, Illinois, Iowa, Michigan, North Carolina, Oregon, Texas, Washington, and Wisconsin. The new organization also houses a sophisticated conservative political database containing over 600,000 activist names in all 50 states.'"

Positions taken
In 2009, FreedomWorks was a prominent opponent of proposals by U.S. President Barack Obama to reform the U.S. healthcare system, of the Waxman-Markey Climate Bill to address global warming, and of state proposals to raise taxes.

Tobacco
According to the U.K. Guardian, FreedomWorks has received funding from the tobacco conglomerate Philip Morris. The Guardian also reports that local branches of FreedomWorks' sister organization, Americans for Prosperity have also received tobacco money and opposes smoke-free workplace laws and cigarette taxes. Freedomworks also opposes tobacco taxes.

Activities
FreedomWorks has mobilized opposition to health care reform, taxes, and climate legislation.

2010
In January 2010, FreedomWorks was offering a "Citizen Lobby Training" for a Tea Party Patriot group whose cofounder was featured in a January 15 New York Times article on the movement's push to take control of the Republican party.

2009 focus on taxes, health care reform, climate
FreedomWorks was one of the lobbying groups involved in orchestrating the April 15, 2009 anti-Obama, anti-tax "tea parties". In February 2009, the FreedomWorks website said the group was "now working with other groups to plan a massive, nationwide tea party protest day for Tax Day on April 15th, 2009", the Tax Day Tea Party protests.

In summer of 2009, FreedomWorks began pursuing an aggressive strategy to create the image of mass public opposition to health care and clean energy reform at Congressmembers' town-hall meetings in their districts. A leaked memo from Bob MacGuffie, a volunteer with the FreedomWorks website "Tea Party Patriots," describes how members should infiltrate town hall meetings and harass and intimidate Democratic members of Congress: "'Spread out in the hall and try to be in the front half. The objective is to put the Rep on the defensive with your questions and follow-up ... You need to rock-the-boat early in the Rep's presentation. Watch for an opportunity to yell out and challenge the Rep's statements early. If he blames Bush for something or offers other excuses -- call him on it, yell back and have someone else follow-up with a shout-out ... The goal is to rattle him ...'"

For example, in August 2009, FreedomWorks supported the American Petroleum Institute's "Energy Citizens" rallies to oppose the Waxman-Markey Climate Bill, held in about 20 states. Other backers included the National Association of Manufacturers, American Conservative Union, Americans for Tax Reform and Council for Citizens Against Government Waste.

2008, focus on the bailout
In 2008, FreedomWorks was behind the creation of a fake grassroots web site called Angryrenter.com which rallied opposition to "the Obama Housing Bailout"; the site claimed to represent "Renters and responsible homeowners against a government mortgage bailout", and urged people to oppose bailing out mortgage companies. Michael M. Phillips of the Wall Street Journal investigated AngryRenter.com and reported : "AngryRenter.com looks a bit like a digital ransom note, with irregular fonts, exclamation points and big red arrows -- all emphasizing prudent renters' outrage over a proposed government bailout for irresponsible homeowners.

"It seems like America's renters may NEVER be able to afford a home," AngryRenter.com laments. The Web site urges like-minded tenants to let Congress feel their fury by signing an online petition. "We are millions of renters standing up for our rights!"

Angry they may be, but the people behind AngryRenter.com are certainly not renters. Though it purports to be a spontaneous uprising, AngryRenter.com is actually a product of an inside-the-Beltway conservative advocacy organization led by Dick Armey, the former House majority leader, and publishing magnate Steve Forbes, a fellow Republican. It's a fake grass-roots effort -- what politicos call an AstroTurf campaign -- that provides a window into the sleight-of-hand ways of Washington."

2006, focus on the mid-term elections
In September 2006, the Milwaukee Journal-Sentinel reported that FreedomWorks "listed Wisconsin's 8th Congressional District race along with 15 other contests around the country where the group will work to highlight economic issues in the November elections. ... Two Republicans and three Democrats are running for the 8th District seat held by Republican Rep. Mark Green, who is running for governor."

The other "competitive races" where FreedomWorks is devoting its "$4 million campaign budget" for 2006 include U.S. Senate races in Michigan, Nebraska and Washington state, and House races in California, Colorado, Florida, Iowa, North Carolina, Oregon, South Carolina, Vermont and Washington state, according to a press release put out by the group.

Immigration
In 2005, the Americans for Border & Economic Security was established by the Republican-leaning PR and lobby firm Quinn Gillespie & Associates to advocate in favor of Bush administration immigration reform proposals. FreedomWorks was a founding member of the group.

Social Security
In 2005, FreedomWorks, "a group allied with Bush, sent its members 'Easter recess action kits' that included talking points and sample questions for town-hall meetings," all in favor of George W. Bush's push to privatize Social Security. "By [FreedomWorks'] own count, the organization supplied about a third of the audience at a recent [pro-privatization] event in Tampa, Fla," reported the Saint Paul Pioneer Press in March 2005. "At least five of its members have joined Bush on stage."

In December 2004, FreedomWorks employee Sandra Jacques was introduced at a White House economic conference as a "single mom" from Iowa who supported the Bush administration's Social Security privatization plan. According to White House budget director, Jacques was was an example of how Bush promotes his agenda with testimonials from "regular folks." As the New York Times pointed out, however, "Ms. Jaques is not any random single mother. She is the Iowa state director of a conservative advocacy group."

The Times also noted that Jacques "spent much of the past two years as a spokeswoman in Iowa for a group called For Our Grandchildren, which is mounting a nationwide campaign for private savings accounts."

In January 2005, FreedomWorks announced that it was organizing a "Fly-in" to Washington DC as part of a "grassroots" lobbying effort for Social Security privatization and to attend a "White House town hall meeting" on the issue with President George W. Bush.

One of the 80 people the group brought to Washington was a Seattle-area businessman, Scott Ballard, the son of a long-time Republican politician in Washington state. The Seattle Post-Intelligencer reported:
 * "He was contacted by the White House last Wednesday about his willingness to participate in an event. White House aides called again Thursday and told him they'd like him to appear at a town hall event with the president. Later that same day, Ballard got a call from FreedomWorks, a group founded by former Republican Reps. Dick Armey and Jack Kemp, offering to pay his expenses."

2005 asbestos hidden conflict of interest
In early 2005, "Radio listeners in 15 states in recent weeks ... heard a broadcast appeal from former House Majority Leader Dick Armey (R-Texas) asking them to help scuttle a bill designed to contain asbestos litigation," reported Roll Call. "But at no time in the ad - made in his capacity as co-chairman of FreedomWorks, a conservative grass-roots network - does Armey disclose that he is also working as a lobbyist for Equitas, a British insurer that has lobbied to thwart the asbestos trust fund legislation." Armey was a registered lobbyist for Equitas, as part of his work at the DLA Piper firm. Equitas "directed $920,000 of the $1.7 million it spent on outside lobbying help last year [in 2004] to DLA Piper."

2004 - Non-profit for hire?
"Speaking as the co-chairman of FreedomWorks" on CNBC in December 2004, Armey "spoke glowingly of 'Rx Outreach,' a national mail order program for low-income people that had just been launched by Express Scripts Inc., a pharmacy benefit management firm based in Maryland Heights, Mo." At the time, FreedomWorks "had been working with Express Scripts' public relations firm, and a week later issued a news release praising Rx Outreach. Now, Express Scripts says it plans to donate money to Armey's group, though it won't say how much or when."

"Critics say the arrangement could call into question FreedomWorks' tax-exempt status because it appears that the group was a 'mouthpiece' for hire," wrote the St. Louis Post-Dispatch, which noted that assertion was "sharply disputed by FreedomWorks." Bill Allison of the Center for Public Integrity said, "It's rare to see someone pushing a company this directly. It does look like it's more of a commercial for this company than a discussion of policy." Law professor Frances Hill noted that "corporate contributions to nonprofits are not supposed to benefit the donor." Hill added, "What it begins to look like is that the organization is operating for the private benefit of the company."

Inconsistency/hypocrisy
FreedomWorks is chaired by former U.S. House Majority Leader, Republican Dick Armey. In a 2005 article, Joe Conason noted:"[Republicans] who have controlled Congress since 1995 long ago proved eager to grease their friends with federal money [ in contrast to their rhetoric about limited government.] ... Asked once why his revolutionary Republican comrades were consuming so much more federal pork than the Democrats ever did, ...[ Dick Armey ] replied smugly: 'To the victors go the spoils.' (He now leads FreedomWorks, a national organization advocating limited government and lower taxes.)'"

Funding
Funders in 2007 were:
 * Armstrong Foundation, 	$20,000  	for Economic Education and policy analysis
 * Lynde and Harry Bradley Foundation, 	$80,000 ($50,000 To support the work of the Portuguese American Leadership Council of the United States, $30,000 to support general operations)
 * Richard and Helen DeVos Foundation, 	$100,000
 * Sarah Scaife Foundation, 	$200,000
 * Shelby Cullom Davis Foundation, 	$20,000

2008
FreedomWorks' 2008 financial report to the Internal Revenue Service listed $4,346,782 in total revenue (including $42,003 from its "affinity program" and $16,828 for "list rental") -- nearly twice the $2,235,030 reported the previous year. The group reported $4,008,312 in total expenses for 2008, compared to $2,070,124 the previous year. In 2008, FreedomWorks reported paying 32 employees.

Outside contractors
In 2008, FreedomWorks reported its highest compensated outside contractors as George Advertising of Oregon, paid $234,560 for "advertising production"; the controversial Republican lobby and PR firm DCI Group of Arizona, paid $141,178, also for "advertising production"; and Morgan, Meredith & Associates of Virginia, paid $133,674 for "printing & mailing of direct mail servi[ces]." FreedomWorks also paid Clearword Communication Group $44,523 in 2008, for "fundraising counsel." In 2008, FreedomWorks reported having financial relationships with two "interested persons": paying Board member Dick Armey $250,000 for "consulting," and paying Matt Kibbe's wife Terry Kibbe $49,500 for "management."

Salaries
Dick Armey's FreedomWorks 2008 salary was reported as $250,000 for 18 hours of work per week, plus $300,000 from related organizations. FreedomWorks' 2008 financial report also lists Jaclynne Brown as Vice President of External Affairs, with a salary of $56,723 for 17 hours of work per week, plus $73,735 from related organizations and $15,785 in other compensation; and Chris Kinnan as Vice President of Interactive Technology, with a salary of $59,582 for 17 hours of work per week, plus $77,451 from related organizations and $8,124 in other compensation.

Related organizations, tax-exempt and taxable
FreedomWorks identified eight "related tax-exempt organizations" in 2008: the FreedomWorks Foundation, the "dormant" CSE FreedomWorks, and six political action committees -- FreedomWorks PAC, Oregon FreedomWorks PAC, Taxpayer Defense Fund, Citizens for PERS Reform, Judicial Integrity Coalition PAC and League of Freedom Voters. FreedomWorks reported donating more than $2 million worth in shared employees and facilities to the Foundation, and giving FreedomWorks PAC $492, Oregon FreedomWorks PAC $8,775, Taxpayer Defense Fund $12,097, Citizens for PERS Reform $11,704 and the Judicial Integrity Coalition $430 as reimbursement for expenses. FreedomWorks also listed the "dormant" Citizens for a Sound Economy as a related taxable entity.

FreedomWorks Foundation Board
As of September 2009:
 * Dick Armey
 * Steve Forbes
 * Ted Abram of the American Institute for Full Employment
 * Matt Kibbe of FreedomWorks
 * Robert Lansing of Litchfield Advisors
 * Frank M. Sands, Sr. of Sands Capital Management

FreedomWorks Personnel
FreedomWorks is chaired by former U.S. House Majority Leader, Republican Dick Armey. Its President and CEO is Matt Kibbe.

(The new group was initially co-chaired by Richard K. Armey, C. Boyden Gray and Jack Kemp. Former chair at Empower America William Bennett was a senior fellow focusing on school choice.)

Board of Directors
As of September 2009:
 * Dick Armey - Chairman
 * James H. Burnley of Venable LLP
 * Matt Kibbe of FreedomWorks
 * Thomas Knudsen of the Thomas Publishing Company
 * Richard J Stephenson of the Cancer Treatment Centers of America and "several other health care, finance, and real estate companies"

Emeritus Board members
As of September 2009:
 * C. Boyden Gray
 * David H. Padden of Padden & Company, Inc. and the Heartland Institute
 * Bill Jaeger of Jaeger Vineyards

Others formerly affiliated
Just prior to Citizens for a Sound Economy morphing into Freedomworks and Americans for Prosperity Dick Armey was CEO/President and Tom Posey was Treasurer, with David H. Koch and C. Boyden Gray sharing seats at the the Board of Directors. Tom Posey was the bagman in the Iran-Contra Scandal transporting money and weapons to the Contras in Nicaragua through his mercenary group Civilian Military Assistance. During this moment C. Boyden Gray was heir to American Tobacco Company fortune participating with CSE, Armey, Koch, and Posey carrying out activities to further the 50-year RICO Organized Crime tobacco frauds. It is significant looking forward that this organization tolerated and approved employee-officers who engaged the overthrow of a popular democratically-elected government.

Staff
As of September 2009, with salary reported in the group's 2008 financial report, when available:
 * Matt Kibbe - President and CEO - reported $121,471 from FreedomWorks for 17 hours of work per week, plus $157,901 from related organizations and $20,136 in "other compensation"
 * Rob Jordan - Vice President, Federal and State Campaigns - 2008 FreedomWorks salary reported as $46,766 for 17 hours of work per week, plus $60,792 from related organizations and $12,079 in other compensation
 * Brendan Steinhauser - Director, Federal and State Campaigns
 * Nan Swift - Federal & State Campaigns Coordinator
 * Max Pappas - Vice President, Public Policy
 * Adam Brandon - Press Secretary
 * Thomas Keeley - Interactive Media Manager
 * Joseph Onorati - Staff Writer
 * Wayne T. Brough, Ph.D. - Chief Economist and Vice President, Research - 2008 FreedomWorks salary reported as $62,081 for 17 hours of work per week, plus $80,699 from related organizations and $11,895 in other compensation
 * Judy Mulcahy - Vice President, Operations - 2008 FreedomWorks salary reported as $68,770 for 17 hours of work per week, plus $89,396 from related organizations and $18,110 in other compensation
 * Jean Campbell - Executive Assistant to Dick Armey
 * Alberta Kinard - Office Administrator
 * Molly Byrne - Vice President of Development - 2008 FreedomWorks salary reported as $62,659 for 17 hours of work per week, plus $81,450 from related organizations and $7,548 in other compensation
 * Julie Schwan - Director of Foundations
 * Andrew Smith - Director of Development
 * Melissa Bevins - Deputy Director, Development
 * Clark Ruper - Development Assistant
 * Allen Page - North Carolina State Director
 * Russ Walker - Oregon State Director - 2008 FreedomWorks salary reported as $50,482 for 17 hours of work per week, plus $65,623 from related organizations and $14,927 in other compensation
 * Tom Gaitens - Field Coordinator, Florida

Other people affiliated with FreedomWorks

 * Justin Cleveland - former staff member
 * Lawrence A. Hunter: "Dr. Hunter is chief economist at FreedomWorks and senior fellow at the Institute for Policy Innovation."
 * Kevin L. Mannix: FreedomWorks Oregon.

Contact information
FreedomWorks 601 Pennsylvania Avenue NW North Building, Suite 700 Washington, DC 20004

Phone: 202.783.3870 Fax: 202.942.7649 Toll Free: 1.888.564.6273

Website: freedomworks.org

Mission Statement
FreedomWorks states that it works "for less government, lower taxes, and more freedom." On its website, FreedomWorks states that it:"...drives policy change by training and mobilizing grassroots Americans to engage their fellow citizens and encourage their political representatives to act in defense of individual freedom and economic opportunity" and in particular, to: "Fight The Left ...[and to create] a grassroots juggernaut capable of going toe-to-toe with the unions, extreme enviros, and the MoveOn.org's of the world."

Related SourceWatch articles

 * 60 Plus Association
 * Astroturf
 * Center for Global Economic Growth
 * Christian Coalition of America
 * Conservatives for Patients Rights
 * Dick Armey
 * Front groups
 * Grassroots
 * Network neutrality
 * Patients United Now
 * Richard W. Rahn
 * Tea Party Patriots
 * Tea Party Express
 * FreedomWorks Foundation
 * Citizens for a Sound Economy

External resources

 * Profile: FreedomWorks Foundation, Media Transparency (undated, accessed June 21, 2007).

External articles

 * "Citizens for a Sound Economy (CSE) and Empower America Merge to Form FreedomWorks", FreedomWorks, July 22, 2004.
 * Judy Sarasohn, "Forces Fuse Into FreedomWorks", Washington Post, July 29, 2004.
 * Bill Berkowitz, FreedomWorks, Z Magazine, October 2004 Volume 17 Number 10.
 * Edmund L. Andrews, "Clamor Grows in the Privatization Debate," New York Times, December 17, 2004. ''Article points out White House's astroturf effort describing Sandra Jaques as simply a "single mother from Iowa."
 * FreedomWorks, "FreedomWorks Activists Arrive in Washington to Campaign for Social Security Reform", Media Release, January 11, 2005.
 * Charles Pope, "Bush kicks off push for Social Security proposal," Seattle Post-Intelligencer, January 12, 2005.
 * Deirdre Shesgreen, "Nonprofit group skirts lobbying laws, critics charge," St. Louis Post-Dispatch, March 5, 2005.
 * Steve Schultze, "Armey's group targets Wisconsin race," Milwaukee Journal-Sentinel, September 5, 2006.
 * Aaron Clark, "Ore. Dems upset over photos used in anti-tax group's mailers," Associated Press, March 2, 2007.
 * Janie Har, "Republican radio ad slams House Democrat on kicker," ''The Oregonian, March 2, 2007.
 * Press release, "Government-Run Health Care Subsidizes Moore’s 'Sicko' Lifestyle," FreedomWorks via Business Wire, June 20, 2007.
 * Press release, "FreedomWorks Launches Online Campaign to Stop HillaryCare," FreedomWorks via Business Wire, November 5, 2007.
 * Hart Williams, "Mannix: Freedom Work$?," Salem-News (Oregon), November 13, 2007.
 * David Steves, "Initiative filings lean to the right politically," The Register-Guard (Eugene, Oregon), December 2, 2007.
 * BlueThunder, "Watching FreedomWorks: NeoCon Grassroots & Shell Oil," DailyKos blog, February 9, 2008.
 * Les Christie, "Backlash grows against the housing bailout: Many Americans want no part of a government-funded bailout for troubled mortgage borrowers," CNNMoney.com, April 24, 2008.
 * Chris Frates, "Christian group clashes with right over Net rights," Politico.com, May 21, 2008.
 * Patrick McIlheran, "Prudence pays for profligacy," Milwaukee Journal-Sentinel (Wisconsin), May 31, 2008.
 * Press release, "FreedomWorks Calls on Columbia Riverkeeper to Clarify Relationship with Eco-Terrorists, Extreme Fringe Movements," FreedomWorks via OregonCatalyst.com, September 18, 2008.
 * Justin Berton, "Web sites focus anger against bailout bill," San Francisco Chronicle, October 1, 2008.
 * Chris Lydgate, "Shadow campaign grinds away at green advocates: Group attacks 'ultra-rich' donors but won’t divulge its own benefactors," Beaverton Valley Times (Oregon), October 16, 2008.
 * Paul Woolverton, "Debate continues on N.C. smoking ban," The Fayetteville Observer (North Carolina), February 27, 2009.
 * Joe Garofoli and Carla Marinucci, "Anti-tax rallies in San Francisco, Sacramento," San Francisco Chronicle, April 16, 2009.
 * Tim Dickinson, "The Lie Machine: GOP operatives are running a secret campaign to kill health care reform, and it's based on Karl Rove's old playbook", Rolling Stone, September 23, 2009.